Commercial - 9. May 2023
Large European logistics real estate developer acquires 17.5 acres in Vejle South
An agreement for the large commercial area in Trekantområdet, Vejle South in Denmark, has been signed. The large European family-owned logistics real estate developer VGP has taken the first step towards their first Danish project. The agreement was brokered by EDC Poul Erik Bech and the next step is to find tenants for the large industrial area. VGP has a strong focus on the green transition and ESG initiatives, where energy-friendly solutions are considered from the start, for the benefit of the tenants.
An agreement on the large area of Vejle South in Trekantområdet along the E45 highway has been secured. Johnny Røn from the construction company Erling Jensen, says: “We are very pleased with the agreement on Vejle South. Seven years ago, I was involved in developing the area together with others, and just under two years ago I was given the opportunity to buy the project with three other investors with the purpose of reselling it. The uncertain times of war in Europe, rising interest rates and less activity in the market presented some challenges. Therefore, the agreement with VGP is a relief. They want to take the next step in the developing Vejle South. The process has been nice and the cooperation with EDC has been good, despite challenging times. After the agreement, there is still about 50,000 sqm of vacant land for office/liberal business left.”
The agreement has been signed with the large European family-owned logistics real estate developer VGP from Belgium, which develops logistics and semi-industrial real estate. They are represented in 17 European countries with more than 100 logistics parks, with Germany as their largest market. They are now also focusing on Denmark with Vejle South.
Highly attractive commercial area
Arne Kristensen, partner at EDC Erhverv Poul Erik Bech Vejle, who brokered the deal together with the international department of EDC Poul Erik Bech, says: “Two gas stations and a Burger King have already been established in the area, and McDonald’s will soon open as well. The new business park is already quietly gathering momentum. We are pleased to have landed the deal with an exciting investor and look forward to even more activity in the area. The next step is that we will help VGP find tenants for the area, but there is generally a great shortage of warehouse and logistics properties, so it is expected that there will be a reasonable demand for renting. VGP has a strong focus on the green transition and ESG, where energy-friendly solutions are considered from the start for the benefit of the tenants.”
He continues: “It is almost the optimal area for a business park. There are large areas with good parking facilities, easy access and, most importantly, frontage towards the E45, where 75,000 motorists drive by daily. Thus, there is good exposure for the future commercial tenants. Vejle Municipality is a good business municipality, and they continue to increase their focus on business, which makes it even more attractive for businesses in Vejle South.”
International expertise for local benefit
The agreement for the large logistics and office space has come about through a collaboration between EDC Poul Erik Bech’s International and Vejle branches. Helle Nielsen Ziersen, Head of EDC Poul Erik Bech International, says: “It has been a really interesting, but also challenging process, where there has been continuous interest from various investors, even though the market has been challenged. The agreement shows that in 2023 it is still possible to complete major deals and projects despite rising interest rates and inflation. However, we have always had great faith in the project, and if you believe in the project, it is possible to secure a deal.”
“I am also pleased that we are once again confirmed that there is a need for national, international and local expertise in interaction and that it is beneficial for all parties in the real estate industry. It shows that our international unit in EDC Poul Erik Bech and our large network of foreign investors can be a great help – also in the local markets in Denmark,” concludes Helle Nielsen Ziersen.